Opening up Digital Assets to Institutional Players
The migration of traditional investors into the digital asset space has contributed significantly to the expansion of the digital asset market in 2020. A report by Fidelity Digital Assets this year found that 80% of U.S and European institutional investors consider cryptocurrency to be an appealing portfolio prospect. The normalization of digital assets in traditional investment portfolios is increasingly inevitable, however, it is not without its challenges.
Institutional investors recognize the need for regulation and risk management infrastructure already concomitant in traditional finance, in order to navigate the crypto asset landscape.
That said, however, there is still another central component in bridging the worlds of conventional and digital finance, that has gone largely overlooked. EQONEX operates under the belief that partnerships with key infrastructural providers and trading software leaders are another important route to institutional investor adoption of crypto.
Indeed, from inception, EQONEX has sought to integrate its industry-leading solutions with some of the most recognized trading infrastructure providers globally.
Access, in particular, is a digital asset trading tool that was designed for integration with best-in-class institutional platforms. The partnership between Access and Itiviti sits at the core of this strategy, providing ease of access and a route for engagement with digital assets for Itiviti’s vast professional customer base.
Functioning as a multi-asset class integrated solution for sales, trading, risk management and operations across multiple crypto exchanges, Access with its Itiviti integrated offering provides a platform for professional investors, who want to gain exposure to crypto. Access and Itiviti believe there is an ideal symbiotic relationship opportunity in pairing such traditional financial infrastructure with digital asset market expertise.
How this Partnership is Bridging the Gap Between Traditional and Digital Asset Trading
In traditional financial markets, the Financial Information Exchange (FIX) is regarded as a key backbone of global financial markets. Itiviti’s NYFIX, a FIX-based routing network, boasts a global ecosystem of participants connecting over 1700 buy-side, sell-side, and trading venues across all asset classes, continuing to spearhead the adoption of new asset classes to make it easier to access via FIX. This partnership enables Access to offer FIX connectivity, which is often referred to as ‘the universal language of capital markets’. This enables easy integration with the trading systems of the more established firms. By engaging with the dominant messaging protocol of traditional financial markets, Access is providing stronger frameworks of investor protection and standardized messaging within the digital trading space.
In turn, Itiviti’s Tbricks functionality offers a tried and tested automated trading technology that provides all important transparency while also offering an automated solution for risk, P&L, and portfolio management. Leveraging the best in class connectivity and OMS solutions within the Itiviti platform also solved a major part of the puzzle of how to provide a bridge for traditional institutions to get more involved with digital assets, and at an incredible scale.
This partnership represents a major milestone for the digital investment industry and paves the way for the future expansion and mainstreaming of the asset class. It also builds on sophisticated, trusted, legacy infrastructure so that institutional investors can trade digital assets with a sense of security and trust. Itiviti’s wide client base spanning Tier 1 banks across regional brokers can now confidently access the crypto-asset market, with the ability to access and trade cryptocurrencies from the same integrated trading platform that they already trade multiple asset classes such as Equities, Derivatives, Fixed Income, and FX.
While firms are demanding greater crypto trading standardization, these demands are coupled with the expectation that portfolios can be managed with access and ease. EQONEX has a competitive advantage, as Itiviti’s Network and Order Management Solutions help Access to achieve these goals of access and standardization.
The partnership allows existing clients of Itiviti to access the digital asset market utilizing the Access suite of algos and spread trading functionality to ensure the best execution across a globally fragmented liquidity pool. Investors can now place trades, see all of their positions in the one platform, manage risk in one place all the while availing of the latest and most sophisticated crypto trading tools.
The Access approach of world-class partnerships with industry leaders has enabled Access to operate with an unprecedented multi-venue integration offering. This ensures that Access users have full portfolio management capabilities — from trade execution to full visibility of their positions and risk on the one platform.
Originally published at https://www.eqonex.com on December 9, 2020.
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